They are paying high interest rates on their debt. if someone with cash can buy this company and eliminate the debt, the assets themselves would more than pay for the buyout. There is net assets of over $700 million. They need to either refinance at a lower interest rate or find a white knight.
Good point you make ! Been watching the stock this morning and it is possible that a bottom is forming with respect to share price ?? Do you suppose they can re-finance the debt at lower interest rates ?
I'm sure they could find a lender, even one of the shareholders, willing to lend them at reate lower than 8.5%. This is a free market. Current rate for mortgage is less than 3%. Why are they still paying such high rates. Totally insane. As soon as news comes that they have restructured their debt, the price will jump to $6. So I'm assuming that restructuring is in the works as we speak, unless management is complete idiot.